Golar LNG Posts Q2 Revenue, Orders New FLNG, and Expands Capacity

Golar LNG reported second-quarter total operating revenue of $130.5 million, up 72% year over year, with net income attributable to Golar of $38 million against $15.6 million a year earlier. Adjusted EBITDA was $127.4 million, up 159% from $49.3 million, reflecting the step change as contracted FLNG capacity came online.

The larger news was the order. Golar signed a $2.45 billion engineering, procurement, and construction contract with CIMC Raffles for a 3.5 million-tonne-per-annum MKII floating LNG unit, with delivery by the end of 2029. The company describes it as the earliest available FLNG capacity in the market, and the contract carries an option for an additional unit.

This is the fourth FLNG unit in the fleet, and it is what makes GLNG a different business than it was three years ago. Golar has converted itself from a shipping-exposed LNG carrier operator into a contracted liquefaction infrastructure owner, where revenue comes from long-dated tolling arrangements rather than spot charter rates.

The trade-off is capital intensity against contract coverage. A $2.45 billion commitment for 2029 delivery has to be financed and then chartered, and the value of "earliest available capacity" depends on how tight the FLNG order book stays over the next three years. The metrics to watch are the financing structure for the new unit and whether the additional-unit option gets exercised, which would signal Golar sees firm demand behind the claim.

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